Companies may be involved in every stage of cloud adoption at once due to the variety of apps and ecommerce businesses that have different life cycles: pilot, migration, continuing modernization, and optimization.
According to Fortune Business Insight, the global ecommerce business cloud market size was $12.32 billion in 2019 and is expected to reach $55.67 billion by 2027, at a CAGR of 20.8% over the forecast period.
Cloud computing allows ecommerce businesses to rent rather than buy gear and software. That helps them reduce the cost of system development.
Prior to using cloud computing, ecommerce businesses can buy the necessary gear and software. This represented a significant portion of the operational budget for small and medium-sized firms.
However, ecommerce businesses may now pay for resources based on their needs.
The Technical Architecture of an ecommerce businesses is Influenced by Cloud Adoption
Ecommerce businesses are divided into two parts: the technological component and the commercial component.
In other words, the hardware and software, as well as consumer and commercial interactions, take place on top of the technical component.
Ecommerce businesses overcome the challenge of resource consumption efficiency by adapting resource purchases to their requirements.
Ecommerce businesses that use a cloud computing solution can acquire just the resources they need on a monthly basis and add new products and services to their subscription-only list when needed. This significantly cuts operational expenses.
1. Cloud Adoption Lowers Operational Costs for Ecommerce Businesses
Ecommerce business owners must consider the costs associated with their investment when purchasing their own gear and software.
Electricity, space rent, software licensing, salaries for individuals in charge of maintaining the technological architecture, and so on, are all costs.
As a result, ecommerce business owners will save money on hardware purchases by outsourcing the technological infrastructure. Furthermore, companies will save money by eliminating the expenses of maintaining that infrastructure.
2. Cloud Adoption Has an Impact on Ecommerce Business Strategy
Massive data storage is a major issue for increasing ecommerce business. Even for rapidly expanding ecommerce businesses, having their own data center is inefficient.
Small and medium-sized organizations lack the financial means to construct their own data centers.
That is why most ecommerce businesses use a hosting service that limits the potential for online business growth and raises operating expenditures.
Ecommerce businesses of all sizes may benefit from a cloud computing solution in a variety of ways. Outsourcing backend infrastructure and application software services, for example. The pay-as-you-use billing model considerably lowers operational costs.
3. Cloud Adoption Has an Impact on the eCommerce Business Chain Structure
Prior to cloud computing, the ecommerce business chain included the following:
- Hardware suppliers
- Software developers
- eCommerce businesses
- System integrating providers
- Service suppliers
- Internet service providers
The majority of these components are now provided by the cloud service provider. As a result, the ecommerce business chain’s structure has shifted.
The Advantages of Cloud Computing for Ecommerce Businesses
Scalability of eCommerce Businesses is critical during the annual sale and the holidays. Cloud computing allows ecommerce businesses to customize subscriptions to their specific requirements.
Owners can scale up or down services according to demand, traffic, and seasonal fluctuations. It is critical to scale the infrastructure as companies grow and expand year after year.
Speed is critical to ecommerce business conversion rates. A sudden surge of traffic might cause a website to slow down and become unusable.
Such circumstances are avoidable. A cloud service gives ecommerce businesses more bandwidth, processing capacity, and storage.
3# Cost-cutting measures
Pay-per-use implies that ecommerce businesses consume services based on their needs. Instead of investing in more technology and software as the company expands, owners may simply raise their subscriptions.
As a result, the cost of establishing and maintaining an IT infrastructure is reduced.
How to Create a Cloud Adoption Framework for E-commerce Business
There are several cloud adoption frameworks to select from. However, the decision-making process may be broken down into four steps: analyze, plan, adopt, and optimize.
Ecommerce business owners should begin with a pros and cons analysis for an efficient and effective migration:
- Examine the obstacles and possibilities associated with cloud implementation.
- Examine the commercial value and IT feasibility (this has a significant impact on the success rate)
- Consider risks and success stories.
- Examine many cloud companies to get the finest options.
2# Make a plan.
Each ecommerce business should have its own cloud adoption framework. Some people will require Software-as-a Service (SaaS) solutions. Some may require Infrastructure as a Service (IaaS) solutions, while others will require Platform as a Service (PaaS).
Owners of ecommerce businesses should select applications that are rapid to market and crucial to revenue and customer satisfaction.
Stand-alone solutions are ideal for early adopters since they are easy to transition.
Ecommerce businesses may employ cloud infrastructure management systems to accelerate the adoption process.
This sort of platform typically includes time-saving features as well as performance, security, and development enhancements.
It provides simple infrastructure administration, automatic provisioning, one-click app deployment, real-time monitoring, and operations management.
Cloud adoption does not cease when all systems are operational. Strategies should also be optimized. As the Ecommerce business grows, so do the requirements.
A proper cloud adoption architecture should ensure the following:
- The capacity to extend or develop new applications more quickly;
- Improved consumer value propositions;
- flexible scalability; cost-effective budgeting;
- Increased corporate innovation;
- Resources and strategies are shared.
Setting up a cloud adoption framework prior to making a final choice is critical, but only if you want to get the full benefits of the cloud.
Exabytes helps eCommerce businesses build the best cloud strategy for their business case, construct a roadmap, and build the best solution for their needs.